American financial watchdogs secured a notable victory last night as a former Goldman Sachs star trader known as “Fabulous Fab” was found guilty of defrauding investors in a $1 billion mortgage-linked deal that collapsed during the financial crisis.

After a civil trial in New York that lasted two weeks Fabrice Tourre, 34, was found liable on six of seven counts of violating federal securities law and deliberately misleading investors.

The French-born former trader, who moved to the United States in 2000 to study at Stanford University, has since left Goldman Sachs, although the bank is understood to be paying his